Computer science graduates are facing an unexpectedly challenging job market as AI automation, mass tech layoffs, and shifting workforce dynamics converge to create what experts call a “perfect storm” for entry-level tech workers.
Alex Diaz, a recent University of Maryland graduate with a 3.83 GPA, exemplifies the struggle. Despite choosing computer science for job security and applying to hundreds of positions, he’s been unable to secure employment. “I chose computer science for insurance,” Diaz told Business Insider. “I thought if I graduate, I’m sure to find a job because every industry needs a computer scientist nowadays.” His experience reflects a broader trend affecting tech graduates nationwide.
James O’Brien, a computer science professor at UC Berkeley, observes a permanent shrinking of the tech job market, placing significant blame on AI’s impact on lower-level positions. “Even at the higher level, it makes people more efficient, so you tend to need fewer people,” he explained. The traditional guarantee of at least one great job offer for tech degree holders has evaporated.
The data paints a stark picture: Research from ADP tracking 75,000 software developers at 6,500 companies shows employment has been falling since 2020, with a sharp drop in January 2022. Surprisingly, computer science graduates now face a 4.3% unemployment rate—higher than philosophy graduates, according to Federal Reserve data from February 2024.
Tech layoffs have flooded the market with experienced workers, creating intense competition for entry-level positions. The industry laid off 263,000 workers in 2022 and 262,735 in 2023. As of October 2024, 457 tech companies had already laid off 139,534 workers. LinkedIn data shows applicants per tech job listing increased from five to seven over two years, with a 19% decrease in IT hiring since summer 2018.
Tech recruiter Alex Hernandez attributes the decline to “increased automation, a reevaluation of workforce needs post-pandemic, and tech companies’ emphasis on efficiency.” He notes that while AI and data science roles have grown, other sectors have contracted. “Many tasks that used to require junior developers or data analysts are being automated, meaning that entry-level roles are becoming more technical and demanding.”
The remote work shift compounds the problem, as companies struggle to train graduates virtually. Chris Abbass, CEO of Talentful, explains that graduates need “a lot of coaching and training for the first three to six months,” which is “very hard remotely.” Companies are increasingly opting for experienced hires to avoid this risk.
Key Quotes
I chose computer science for insurance. I thought if I graduate, I’m sure to find a job because every industry needs a computer scientist nowadays.
Alex Diaz, a recent University of Maryland graduate with a 3.83 GPA, explains why he chose his major—only to find himself unable to secure employment despite hundreds of applications. His experience challenges the long-held belief that computer science degrees guarantee job security.
Even at the higher level, it makes people more efficient, so you tend to need fewer people. It’s like a perfect storm of this new technology, offshoring, and remote employment.
James O’Brien, a computer science professor at UC Berkeley, describes how AI is fundamentally reshaping the tech job market by reducing workforce needs across all levels. He doesn’t expect the market to recover to previous levels, suggesting this represents a permanent structural change.
Many tasks that used to require junior developers or data analysts are being automated, meaning that entry-level roles are becoming more technical and demanding.
Alex Hernandez, a tech recruiter and former Twitter employee, explains how AI automation is specifically targeting the types of tasks traditionally assigned to entry-level workers, making it harder for graduates to find their first positions in the industry.
Graduates need a lot of coaching and training for the first three to six months in a role, and this is very hard remotely. Companies are not investing in other ways to do this and are opting to avoid the risk and go with experienced hires.
Chris Abbass, CEO of tech recruiting platform Talentful, identifies how the shift to remote work compounds the challenges for new graduates, as companies find it difficult to provide necessary training virtually and instead choose to hire experienced workers.
Our Take
This article reveals a troubling paradox: AI is simultaneously creating demand for tech skills while eliminating entry-level pathways to acquire them. The industry risks creating an unsustainable talent pipeline where experienced workers are valued but new workers cannot gain experience.
What’s particularly concerning is the speed of this transformation. The shift from computer science being the “safe” career choice to having higher unemployment than philosophy degrees happened in just a few years. This suggests AI’s labor market impact is accelerating faster than institutions can adapt.
The “perfect storm” O’Brien describes—AI automation, offshoring, remote work, and post-pandemic restructuring—may represent a preview of disruption coming to other white-collar sectors. If highly technical, supposedly “AI-proof” careers like software development are vulnerable, few professions can claim immunity. The tech industry’s current struggles with graduate employment may be the canary in the coal mine for broader AI-driven workforce transformation across the economy.
Why This Matters
This story signals a fundamental shift in the tech employment landscape that challenges decades of conventional wisdom about computer science degrees guaranteeing stable careers. The convergence of AI automation, mass layoffs, and remote work is creating structural changes that may permanently alter entry-level tech employment.
The implications extend beyond individual job seekers to educational institutions, workforce development, and economic policy. If AI continues automating entry-level tasks while companies prioritize efficiency over training new talent, we risk creating a “missing generation” of tech workers who never gain foundational experience. This could lead to future talent shortages as experienced workers retire without adequately trained replacements.
For the broader economy, this represents an early warning about AI’s disruptive potential. If even highly-skilled computer science graduates struggle to find work, it suggests AI’s impact on employment may be more immediate and severe than anticipated. The fact that worker confidence is at a four-year low, with 73% of Gen Z professionals feeling overwhelmed by workplace changes, indicates this anxiety is already affecting workforce morale and career planning decisions across industries.
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Source: https://www.businessinsider.com/tech-graduate-job-market-ai-layoffs-2024-10